A Petty Cash Fund, Established with a $250 Balance, Had

question 173

Multiple Choice

A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

• A)credit to Cash in Bank for $250.
• B)debit to Petty Cash for $219.
• C)debit to Cash Short and Over for $3.
• D)credit to Cash in Bank for $216.

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Definitions:

Market Risk

Market risk is the potential for an investor to experience losses due to factors that affect the overall performance of the financial markets.

Business-specific Risk

The risk associated with the particular circumstances of a specific business, including its industry, market position, and management.

SML

Stands for Security Market Line, which represents the expected return of a market security as a function of its systematic, non-diversifiable risk.

Coefficient of Variation

A statistical measure that assesses the relative variability of data points around the mean, indicating the level of dispersion.